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ay (1hemende of (MNate) ti 1 whissanit Laiho Industries: Balance Sheets as of December 31 (thousands of dollars) \begin{tabular}{lrr} \cline { 2 - 3 } Total liabilities & $157,097 & $125,961 \\ Common stock & 103,500 & 91,000 \\ Retained earnings & 53,048 & 34,545 \\ \hline Total common equity & $156,548 & $125,545 \\ Total liabilities and equity & $313,645 & $251,506 \\ \hline \end{tabular} a. Sales for 2021 were $443,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $9,152,000, the corporate tax rate was 25%, and Laiho pays 46.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement. Laiho Industries: Income Statement for Year Ending December 31,2021 (thousands of dollars) a. Sales for 2021 were $443,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 17% of net fixed assets, interest was $9,152,000, the corporate tax rate was 25%, and Laiho pays 46.25% of its net income as dividends. Given this information, construct the firm's 2021 income statement. Laiho Industries: Income Statement for Year Ending December 31,2021 (thousands of dollars) b. Construct the statement of stockholders' equity for the year ending December 31,2021 , and the 2021 statement of cash flows. Hint: The difference in accumulated depreciation from one year to the next is the annual depreciation expense for the year. Laiho Industries: Statement of Cash Flows for 2021 (thousands of dollars) Increase in accounts receivable Increase in inventories Net cash provided by operating activities Investing Activities Additions to property, plant, and equipment Net cash used in investing activities Financing Activities Increase in notes payable Increase in long-term debt Increase in common stock Payment of common dividends Net cash provided by financing activities $ d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders? If Laiho increased its dividend payout ratio, the firm would pay corporate taxes and the company's shareholders would pay taxes on the dividends they would receive. e. Assume that the firm's after-tax cost of capital is 11.5\%. What is the firm's 2021 EVA? $ thousand f. Assume that the firm's stock price is $20 per share and that at year-end 2021 the firm has 10 million shares outstanding. What is the firm's MVA at year-end 2021 ? $ thousand
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